In double-entry accounting, the normal balance of a liability account is a credit.
A liability represents an obligation the business owes, such as a loan, accounts payable, or wages payable. Under the accounting equation—assets equal liabilities plus equity—an increase in a liability is recorded with a credit. A debit reduces that liability, assuming the account is operating normally.
The word “normal” does not mean every liability account always has a credit balance. A liability can temporarily show a debit balance if it has been overpaid, misclassified, or otherwise reduced below zero. The term identifies the side that normally increases the account.
This convention is part of the broader debit-and-credit framework: assets and expenses normally carry debit balances, while liabilities, equity, and revenue normally carry credit balances. Every transaction still requires equal total debits and credits, so a liability credit is paired with another entry, such as a debit to cash when a loan is received.